1998 (9) TMI 89 - SC - Customs

Summary

Issues:
- Misdeclaration of goods
- Under-declaration of value
- Unauthorized import
- Confiscation of goods
- Imposition of penalty and redemption fine

Misdeclaration of Goods:
The case involved the import of 1564 evaporators for automobiles, with 1456 units of Thai origin and 98 units of Japanese origin. The appellant declared the value as S $ 45 per piece for Thai origin and S $ 60 per piece for Japanese origin. The show cause notice alleged misdeclaration, stating the goods were cooling units instead of evaporators, the value was under-declared, and the import was unauthorized as per the license produced.

Under-Declaration of Value:
The Collector found that the country of origin for 210 pieces was misdeclared as Thailand, while they were of Japanese origin. Additionally, the declared assessable values were lower than the correct values determined by the Collector. The Collector demanded a differential customs duty and imposed a redemption fine of Rs. 20,00,000/- and a penalty of Rs. 5,00,000/-.

Unauthorized Import:
The Collector concluded that the goods were imported without proper authorization as the license produced for clearance was invalid and did not cover the imported goods. The Tribunal upheld these findings and agreed with the Collector's decision regarding the misdeclaration of goods, under-declaration of value, and unauthorized import.

Confiscation of Goods and Imposition of Penalty:
The Tribunal reduced the penalty from Rs. 5,00,000/- to Rs. 2,50,000/- and the redemption fine from Rs. 20,00,000/- to Rs. 10,00,000/-. The Supreme Court, after reviewing the Tribunal's judgment and the Collector's order, found no errors of law in the findings related to misdeclaration and upheld the decision. The Court dismissed the appeal, refusing to reduce the penalty and redemption fine, stating no grounds were presented for interference.

In conclusion, the Supreme Court upheld the Tribunal's decision regarding the misdeclaration of goods, under-declaration of value, and unauthorized import. The Court found no legal errors in the findings by the Collector and dismissed the appeal, maintaining the penalty and redemption fine imposed by the Tribunal.